Abu Dhabi, UAE — Borouge has reported a net profit of $282 million (AED1.04 billion) for the quarter ended 30th September, marking a 22 percent increase over the previous quarter, supported by a 16 percent increase in sales volumes.
Strong production, targeted cost management and revenue optimization from its Value Enhancement Programme helped Borouge display resilience in the face of a subdued global environment and challenging polyolefins market.
The company said the Programme delivered a $420 million positive impact in the first nine months of 2023, surpassing its target of $400 million for the 2023 financial year.
The company has committed a dividend of $1.3 billion (15.9 fils per share) for the 2023 financial year, which equates to a 6.3 percent current dividend yield.
Third-quarter revenue increased 6 percent quarter-on-quarter, reaching $1.5 billion, and declined 11 percent year-on-year. On a year-on-year basis, net profit declined by 9 percent.
Cash conversion was very strong at 97 percent, with a healthy adjusted operating free cash of $573 million, up 15 percent quarter-on-quarter. High production volumes of both polyethylene (PE) and polypropylene (PP) included 38 percent of total sales in the value-added infrastructure segment, representing the unique positioning of Borouge’s products.
Highlights for the nine months ended 30th September
In the first nine months of 2023, sales volume grew by more than 2 percent year-on-year to 3.8 million tons. Revenue for the period reached $4.3 billion, with adjusted EBITDA reaching $1.6 billion.
Net profit for the period was $713 million, impacted by a significant year-on-year decline in average selling prices compared to their peak levels in 2022 and partially offset by healthy additional volume.
Borouge achieved very high production utilization rates, with PE production at 104 percent and PP production at 109 percent for during the quarter.